The dividend yield of Nifty 50 currently stands at 1.41%. Also, Zerodha has introduced SIP feature for Stocks/ETFs, which can also be used for systematically selling those Stocks/ETFs as well. Given this, if one buys Nifty 50 ETF (say 1000 units), using the SIP feature, one can set up instructions to sell it on a monthly basis (as around 14 units would be due as a dividend every year at current dividend yield, one can round it off and sell 1 unit each month). This way, one can get a dividend for all Nifty 50 dividend stocks in a manner that is much more tax-efficient compared to if the AMC managing the Nifty 50 ETF actually gives a dividend itself (that would get taxed at slab rates as per current tax laws and TDS being withheld when dividend crosses Rs.5000 threshold). But I understand that this might not be very efficient on a smaller scale (like 1000 ETF units) if done on a month-to-month basis (due to the DP charges) and would likely be better to do once a year instead.
Also, even though NiftyBees ETF doesn’t pay dividends but those reflect in the ETF’s NAV instead (as those dividends get reinvested back). A SEBI guideline had mandated the switch to tracking the Total Return Index for all Mutual Fund schemes (including ETFs) back in 2018. A Varsity chapter also mentions about this -
Note: Always compare the ETF price with the total returns index (TRI) and not the price returns the index (PRI). The TRI includes dividends. All the index data you see on Kite is PRI. Since ETFs track TRI indices, they re-invest the dividends which reflects in the NAV of the ETF.